NCLAT upholds two more CCI directions against Google, corrects error

The National Company Law Appellate Tribunal (NCLAT) has corrected an “inadvertent error” in its March 28 ruling in the high-profile antitrust dispute between Google and the Competition Commission of India (CCI). .In an order dated May 1, the Appellate Tribunal clarified that directions 395.4 and 395.5 - which required Google to maintain transparency in data collection and to avoid leveraging consumer data - were upheld, not set aside. The application for clarification was filed by CCI, contending that while the body of the judgment upheld these directions, the final directions set them aside. .The original operative portion of the March ruling (para 107(iii)) had erroneously stated that directions in 395.4 and 395.5 were set aside, despite the main judgment (para 93) explicitly sustaining them. These directions are:395.4: “Google shall set out a clear and transparent policy on data that is collected on its platform, use of such data by the platform and also the potential and actual sharing of such data with app developers or other entities, including related entities.”395.5: “The competitively relevant transaction/ consumer data of apps generated and acquired through GPBS, shall not be leveraged by Google to further its competitive advantage. Google shall also provide access to the app developer of the data that has been generated through the concerned app, subject to adequate safeguards, as highlighted in this order.”The May 1 order now amends paragraph 107(iii) to read: “Directions issued in paragraph 395.4 and 395.5 are sustained and directions contained in 395.6 and 395.7 are set aside.".Senior Advocate Sajan Poovayya, appearing for Google, had argued that the CCI’s application amounted to a review. However, the NCLAT held that this was a permissible correction and “not a review of the judgment.”.The CCI initiated its investigation in November 2020, following complaints that Google forced app developers to use its proprietary billing system. In October 2022, CCI concluded that these practices were discriminatory and fined Google ₹936.44 crore, issuing remedial directives.Google appealed to the NCLAT in January 2023, and the March 2025 judgment largely affirmed the CCI’s findings on abuse of dominance, but trimmed back preventive remedies and recalibrated the penalty. .After the NCLAT's amendment, the following CCI orders stand upheld:.Violation of Section 4(2)(a)(i): Mandatory use of Google Play Billing System (GPBS) was held anti-competitive.Violation of Section 4(2)(e): Google was found to have leveraged its dominance in the app store and OS markets to promote Google Pay.Definition of relevant market by CCI: NCLAT accepted the CCI’s delineation of:Market for licensable OS for smartphones in India,Market for app stores for Android OS in India,Market for UPI-based digital payment apps.Effect analysis conducted by CCI: Tribunal found that CCI conducted a valid effect-based analysis.Requirement to allow third-party billing options: NCLAT upheld the CCI direction on this point.Transparency in data use (Direction 395.4): Google must clearly disclose its data usage and sharing policies.No leveraging of app data for competitive advantage (Direction 395.5): Google cannot use Play Billing data to benefit its own services and must share such data with developers, with safeguards.Penalty conceptually valid: But modified to apply only to relevant turnover, not global or entire turnover..The following directions were set aside by NCLAT:Violation of Section 4(2)(a)(ii): No discriminatory pricing established with respect to YouTube’s lower fees.Violation of Section 4(2)(b)(ii): No sufficient evidence that Google’s conduct restricted technical or scientific development.Violation of Section 4(2)(c): No denial of market access established; Google Pay’s <1% UPI share was not significant enough to prove foreclosure.Directions 395.6 and 395.7: These ex-ante/preventive directions—based solely on Google's “gatekeeper” status—were found to be ultra vires (beyond CCI’s statutory powers under existing law).CCI’s penalty calculation methodology: Use of entire turnover was incorrect; NCLAT recalculated penalty based on Play Store-specific revenues, reducing the fine from ₹936.44 crore to ₹216.69 crore..Senior Advocate Ritin Rai also represented Google. The seniors were briefed by Advocates Karan Chanhiok, Deeksha Manchanda, Tarun Donadi, Bhavika Chhabra, Kaustav Kundu, Aavantika Kakkar, Raksha Aggarwal, Palash Maheshwari, Dayaar Singla, Vijyendra Pratap Singh and Sayobani Basu from Cyril Amarchand Mangaldas and Chandhiok and Mahajan..CCI was represented by Senior Advocate Balbir Singh with Advocates Samar Bansal, Manu Chaturvedi, Monica Benjamin, Kaustubh Chaturvedi, Vedant Kapur and Shivali Shah..Alliance Digital India Foundation was represented by Senior Advocate Jayant Mehta with Advocates Abir Roy, Vivek Pandey, Aman Shankar, Biyanka Bhatia, Sasthibrata Panda and Shreya Kapoor from Saravada and Partners..[Read Judgment]